Aronova Holdings Ltd - Period Ending 2018-12-31

Registration number: 04685856

Aronova Holdings Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2018

Aronova Holdings Ltd

Contents

Section	Page
Company Information	1
Directors' Report	2
Statement of Income and Retained Earnings	3
Balance sheet	4
Notes to the Financial Statements	5 to 9

Aronova Holdings Ltd

Company Information

Directors

D Baker A McGinley M Parsons

Company secretary

A McGinley

Registered office

79a High Street Teddington Middlesex TW11 8HG

Accountants

Harmer Slater Limited 79a High Street Teddington Middlesex TW11 8HG

Page 1

Aronova Holdings Ltd

Directors' Report for the Year Ended 31 December 2018

The directors present their annual report on the affairs of Aronova Holdings Ltd, together with the financial statements for the year ended 31 December 2018.

Principal activity

The principal activity of the company is a non-trading holding company.

Directors of the company

The directors who served throughout the year and up to date of authorisation of this report were as follows:

D Baker

A McGinley

M Parsons

Going concern

Following a review of the company's available resources, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Small companies provision statement

The directors have taken advantage of the small companies exemptions provided by sections 414B and 415A of the Companies Act 2006 from the requirement to prepare a strategic report and in preparing the directors' report on the grounds that the company is entitled to prepare its accounts for the year in accordance with the small companies regime.

The directors' report was approved by the board on 12 April 2019 and signed on its behalf by:

.........................................
D Baker
Director

Page 2

Aronova Holdings Ltd

Statement of Income and Retained Earnings
for the Year Ended 31 December 2018

	Note	2018  £	2017  £
Turnover		-	-
Administrative expenses		(42,834)	(51,439)
Operating loss		(42,834)	(51,439)
Income from shares in group undertakings		600,000	-
Profit/(loss) before tax		557,166	(51,439)
Profit/(loss) for the financial year		557,166	(51,439)
Retained earnings brought forward		191,072	692,511
Dividends paid		(600,000)	(450,000)
Retained earnings carried forward		148,238	191,072

Continuing operations
All results are derived wholly from continuing operations.
 

The notes on pages 5 to 9 form an integral part of these financial statements.
Page 3

Aronova Holdings Ltd

(Registration number: 04685856)
Balance sheet as at 31 December 2018

	Note	2018  £	2017  £
Fixed assets
Intangible assets	3	248,444	287,672
Investments	4	10,075	10,000
		258,519	297,672
Current assets
Debtors	5	30,414	30,414
Cash at bank and in hand		57,848	60,464
		88,262	90,878
Creditors: Amounts falling due within one year	6	(188,543)	(187,478)
Net current liabilities		(100,281)	(96,600)
Net assets		158,238	201,072
Share capital and reserves
Called up share capital	7	10,000	10,000
Retained earnings	7	148,238	191,072
Total equity		158,238	201,072

For the financial year ending 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements of Aronova Holdings Ltd were approved and authorised for issue by the board on 12 April 2019 and signed on its behalf by:
 

.........................................

D Baker

Director

The notes on pages 5 to 9 form an integral part of these financial statements.
Page 4

Aronova Holdings Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2018

1	General information

Aronova Holdings Ltd (the 'company') is a private company limited by share capital incorporated in England and Wales under the Companies Act. The address of the registered office is given on page 1. The nature of the company’s operations and its principal activities are set out in the directors report on page 2.

2	Accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The functional currency of the company is considered to be pounds sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).

The functional currency of the company is considered to be pound sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).

Judgements and key sources of estimation uncertainty

There are no critical judgements made by the directors in the process of applying the company’s accounting policies which have the most significant effect on the amounts recognised in the financial statements.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Intangible assets

Intellectual Property Rights are shown at historical cost.

Page 5

Aronova Holdings Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2018 (continued)

2	Accounting policies (continued)

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Intellectual Property Rights	10% on straight line basis

Investments

Investments are accounted on the basis of historical cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Page 6

Aronova Holdings Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2018 (continued)

3	Intangible assets

	Intellectual Property Rights  £	Total £
Cost
At 1 January 2018	392,280	392,280
At 31 December 2018	392,280	392,280
Amortisation
At 1 January 2018	104,608	104,608
Amortisation charge	39,228	39,228
At 31 December 2018	143,836	143,836
Net book value
At 31 December 2018	248,444	248,444
At 31 December 2017	287,672	287,672

 

4	Investments in subsidiaries, joint ventures and associates

	2018  £	2017  £
Investments in subsidiaries	10,075	10,000

Subsidiaries	£
Cost
At 1 January 2018	10,000
Additions	75
At 31 December 2018	10,075
Provision
Net book value
At 31 December 2018	10,075
At 31 December 2017	10,000

Page 7

Aronova Holdings Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2018 (continued)

4	Investments in subsidiaries, joint ventures and associates (continued)

The company owns 100% of the ordinary share capital of, Aronova Interactive Limited, a company incorporated in England. As at 31st December 2018, Aronova Interactive Limited had net assets of £3,527,383 [2017: £3,111,166] and its post-tax profit for the year then ended was £1,016,217 [2017: £442,261].

During the year, the company invested in 100% of the share capital of Aronova Inc, a company incorporated in the United states of America. The company was formed with a share capital of 100 shares @ $1 per share. These are accounted at cost in the financial statements.

5

Debtors

	2018  £	2017  £
Other debtors	30,414	30,414
	30,414	30,414

Other debtors include £30,414 (2017: £30,414) owed by Aronova SPV Limited, a company under common control.

6

Creditors

	2018  £	2017  £
Due within one year
Trade creditors	2,100	1,140
Amounts owed to group undertakings	185,273	185,198
Accrued expenses	1,170	1,140
	188,543	187,478

Page 8

Aronova Holdings Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2018 (continued)

6	Creditors (continued)

The company owed £185,273 (2017:£185,198) to Aronova Interactive Limited, the 100% subsidiary of the company.

7	Share capital and reserves

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary shares of £1 each	10,000	10,000	10,000	10,000

The company has one class of share capital which carries no right to fixed income.

Reserves
The retained earnings reserve represents cumulative profit or losses net of dividends paid and other adjustments.

8	Other long-term employment and termination benefits

Employment related securities During the year the company issued employment related security option to the employees of Aronova Interactive Limited, a wholly owned subsidiary.

9

Dividends

	2018	2017
	£	£
Interim dividend of £60.00 (2017 - £45.00) per ordinary share	600,000	450,000

10	Staff numbers

The average number of persons employed by the company (including directors) during the year, was Nil (2017: Nil).

Page 9